Bitcoin price closed the weekly on a red with a 3.66% decline. The price recorded at a high near $10,000 as CME futures price broke bullish. However, it was soon neutralized by selling pressures. The weekly closing price is $9207.
The market remained dull for the most part of last week. The primary range of the price was $200 between $9350 and $9150.
According to Tone Vays sequential analysis, the historic break on 25th October signals a long-term bullish reversal. However, it is subject to confirmation with this week’s close. It needs to above last week’s high. He specified his conditions in order to be a long-term bull at the moment,
So I would need to see pretty much $10,000 broken by next week in order to be bullish.
Bull Flag or Another Descending Triangle?
The consolidation after a massive price surge last Friday has kept traders guessing of its’ next big move. A short term continuation or bearish pattern after a big move on the upside is an indication of another leg-up. This formation is known as the bull flag. Sawcruhteez, a chart analyst and expert trader in his price analysis update stated his conditions for a bearish reversal, he said,
“[It] is when the length of this flag starts to get too wide in relation to the prior run-up.”
Currently, Bitcoin is testing the breakout levels as support around $9150. While the TA is still inclined to bulls, an elongation of the break could flip the market sentiments to bears. What looks like a bull flag, could turn to a bearish descending triangle with a target below $8000.
Nevertheless, at times of uncertainty, Bitcoin’s price has been known to remain non-volatile for long stretching periods. It might also witness a couple of fake-outs or flash movements during this period. However, a break below or above $8000 and $10000 should act as confirmations from both psychological and technical perspectives.
The price of Bitcoin at 5: 00 hours UTC on 4th November is $9136. It is trading above the support at 200-Day Moving average at $9106, which remains bullish. However, it is closer to a short-term bearish break at the moment.
Do you think Bitcoin will bounce above the 200-Day Moving Average? Please share your views with us.